Allocate compensation budget before acquiring land, PM tells institutions

DODOMA: PRIME Minister Kassim Majaliwa has directed all institutions planning to invest in areas where people live or farm to ensure they have a budget in place for compensating those affected.

This measure, he stated, is aimed at minimising unnecessary disruptions for affected communities and disputes between the communities and the institutions. He issued the directives on Thursday in Parliament during the direct questions to the Prime Minister session, as he addressed policy-related questions from lawmakers.

Responding to Kilwa South MP Ally Kassinge, who raised concerns about compensation delays for lands acquired for infrastructure development, the Premier said that organisations should have the funds ready before starting any assessments.

Mr Kassinge had suggested allowing residents to continue using their land until they receive compensation, noting that delays can sometimes be extensive.

Mr Majaliwa further said that the current laws govern the compensation process and warned that allowing residents to stay on land marked for infrastructure could significantly increase compensation costs.

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“Institutions, whether public or private, must budget for compensation before moving forward with any project that affects community land,” Majaliwa said.

In addition to the compensation issue, Majaliwa said the production sector has a role to play in national economic growth. He said that a robust production sector can substantially expand the country’s GDP.

“The government is focused on creating investment-friendly policies, establishing supportive laws and setting up efficient procedures to encourage better performance within the sector,” Majaliwa said.

He said that establishing industries that add value to agricultural products is key to expanding market access. Furthermore, the government is actively enhancing overall investment conditions through the Tanzania Investment Centre (TIC).

The centre has outlined critical support services that ensure seamless investments, including reliable road infrastructure, railway connections and stable electricity. Mr Majaliwa said that the government’s strategic plan opens up new entrepreneurial opportunities, especially in production, for Tanzanians.

“With these measures, Tanzanians who wish to enter the production sector now have a promising opportunity to generate substantial income,” he said.

The Prime Minister’s response came following a question from Handeni Rural MP Reuben Kwagila. Mr Kwagila said that while the GDP had grown to 148.39tril/- in 2023, the production sector’s contribution remained low.

He urged the government to ensure greater private sector involvement to boost the sector’s role in the national economy.